BILL NUMBER: S5455
SPONSOR: JACKSON
 
TITLE OF BILL:
An act to amend the tax law, in relation to exempting the sale of the
first thirty-five thousand dollars of a battery, electric, or plug-in
hybrid electric vehicle from state sales and compensating use taxes, and
to authorize cities and counties to elect such exemption
 
PURPOSE:
The purpose of this legislation is to encourage purchasers of motor
vehicles to choose battery, electric, or plug-in hybrid electric vehi-
cles.
 
SUMMARY OF PROVISIONS:
Section 1 adds a new paragraph 47 to Section 1115 of the Tax Law to
exempt the first $35,000 of retail value of the sale or lease of a
battery, electric, or plug-in hybrid vehicle from sales tax.
Section 2 adds a new subdivision (d) to Section 1160 of the Tax Law to
clarify that the exemption provided for in Section 1115 of the Tax Law
does not limit the applicability of this section, which is the special
tax on passenger car rentals.
Section 3 amends Section 1210 of the Tax Law to authorize any city or
county imposing a tax under this section to exempt electric vehicles.
Section 4 is the same as Section 1 of the bill but removes "plug-in
hybrid." Section 5 is the same as Section 2 of the bill but removes
"plug-in hybrid." Section 6 is the same as Section 3 of the bill but
removes "plug-in hybrid." Section 7 is the effective date.
 
JUSTIFICATION:
The incentives contained in this legislation are aimed at encouraging
the purchasers of motor vehicles to choose battery, electric, or plug-in
hybrid electric vehicles. The transportation sector is responsible for a
significant portion of greenhouse gas emissions. The adoption of elec-
tric vehicles is a step consumers can take to decrease greenhouse gass-
es.
New York has a number of incentives to encourage the adoption of elec-
tric vehicles including a rebate for the purchase of electric vehicles
through the New York State Energy Research and Development Authority and
a reduction in tolling through the Clean Pass Program. However, the tax
exemption in this legislation will provide a long-term incentive to
motorists to choose clean vehicles.
 
LEGISLATIVE HISTORY:
2021-2022: S.4476 - Reported and Committed to Finance
2019-2020: S.3827-B - Amend and Recommit to Budget and Revenue
 
STATE AND LOCAL FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the first day of a sales tax quarterly
period, as described in subdivision (b) of section 1136 of the tax law,
beginning at least one hundred twenty days after the date this act shall
have become a law and shall apply to sales made on or after such date;
provided, however, that sections four, five and six of this act shall
take effect ten years after such effective date and shall apply to sales
made on and after such date.

Statutes affected:
S5455: 1115 tax law, 1160 tax law